Discontinued Operations

6 Months Ended

Jul. 31, 2017

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

12. DISCONTINUED OPERATIONS

On August 1, 2015, the Trust finalized and committed to a plan to sell all the hotel properties. As of May 1, 2016, the Trust listed all the Hotel properties with a local real estate hotel broker, and management believes that each of the assets is being marketed at a price that is reasonable in relation to its current fair value. The Trust believes that the plan to sell these assets will not be withdrawn. Through the Trust’s Form 10-Q for the quarter ended July 31, 2016 filed with the SEC on September 14, 2016, the Trust classified all the Hotel properties as Assets Held for Sale. As of October 31, 2016, the Trust has decided to reclassify these assets back into operations as many of these assets have been marketed for sale for more than one year. At this time, the Trust is unable to predict when, and if, any of these Hotel properties will be sold. The Trust continues to list these properties with local real estate hotel brokers, and believes that each of the assets is being marketed at a price that is reasonable in relation to its current fair value. On June 2, 2017, the Ontario Hospitality Properties LLLP was sold to an unrelated third party for $17,500,000 (see Note 11).

The Trust has recognized the sale of the Ontario hotel into discontinued operations in accordance with Accounting Standards Codification (ASC) No. 205-20, Discontinued Operations. As such, the historical results of the Ontario hotel has been adjusted for comparability purposes and exclude any corporate general and administrative expenses.

Discontinued operations in the six months ended July 31, 2017 and July 31, 2016 primarily consists of all hotels operational revenues and expenses for the Ontario hotel property and does not include the sale proceeds and profit from the sale of the Ontario hotel.

The following unaudited financial information presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations for the six months ended July 31, 2017 and the fiscal year ended January 31, 2017 as well as the statements of operations for the six months and three months ended July 31, 2017 and the six months and three months ended July 31, 2016.

	DISCONTINUED OPERATIONS
	JULY 31, 2017		JANUARY 31, 2017
	(UNAUDITED)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	117,604	$	89,561
Accounts Receivable		10,246		92,743
Prepaid Expenses and Other Current Assets		3,339		46,823
Total Current Assets of Discontinued Operations		131,189		229,127
Property, Plant and Equipment, net		-		6,080,597
TOTAL ASSETS OF DISCONTINUED OPERATIONS	$	131,189	$	6,309,724
LIABILITIES
LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Expenses	$	20,111	$	400,402
Current Portion of Mortgage Notes Payable		-		185,207
Total Current Liabilities of Discontinued Operations		20,111		585,609
Mortgage Notes Payable		-		5,047,838
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS	$	20,111	$	5,633,447

	FOR THE SIX MONTHS ENDED
	JULY 31,
	2017			2016
REVENUE
Room	$	1,397,324		$	1,931,996
Food and Beverage		64,976			88,467
Other		8,443			17,417
TOTAL REVENUE		1,470,743			2,037,880
OPERATING EXPENSES
Room		939,663			599,147
Food and Beverage		66,152			102,178
Telecommunications		-			607
General and Administrative		256,986			221,994
Sales and Marketing		123,299			141,307
Repairs and Maintenance		100,149			163,314
Hospitality		122,465			118,222
Utilities		74,640			122,303
Depreciation		177,824			-
Intangible Amortization		56,015			-
Real Estate and Personal Property Taxes, Insurance and Ground Rent		-			70,693
Other		3,568			(5,496	)
TOTAL OPERATING EXPENSES		1,920,761			1,534,269
OPERATING INCOME (LOSS)		(450,018	)		503,611
Interest Income		961			-
TOTAL OTHER INCOME		961			-
Interest on Mortgage Notes Payable		127,787			139,083
Interest on Other Notes Payable		428			4,518
TOTAL INTEREST EXPENSE		128,215			143,601
CONSOLIDATED NET INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS, NET OF NON-CONTROLLING INTEREST	$	(577,272	)	$	360,010

Capital expenditures from discontinued operations approximately $37,500 and $182,000 for the six months ended July 31, 2017 and 2016, respectively.

	FOR THE THREE MONTHS ENDED
	JULY 31,
	2017			2016
REVENUE
Room	$	353,233		$	1,030,774
Food and Beverage		16,159			34,614
Management and Trademark Fees		-			-
Reservation and Convention		-			-
Other		3,093			11,114
TOTAL REVENUE		372,485			1,076,502
OPERATING EXPENSES
Room		645,177			331,231
Food and Beverage		17,707			45,520
Telecommunications		-			6
General and Administrative		115,581			127,164
Sales and Marketing		63,996			82,309
Repairs and Maintenance		39,748			62,502
Hospitality		72,663			58,395
Utilities		20,772			61,580
Depreciation		52,684			-
Intangible Amortization		-			-
Real Estate and Personal Property Taxes, Insurance and Ground Rent		26,310			39,101
Other		3,485			-
TOTAL OPERATING EXPENSES		1,058,123			807,808
OPERATING INCOME (LOSS)		(685,638	)		268,695
Interest Income		961			-
Interest Income on Advances to Affiliates - Related Party		-			-
TOTAL OTHER INCOME		961			-
Interest on Mortgage Notes Payable		63,438			69,619
Interest on Notes Payable to Banks		-			-
Interest on Other Notes Payable		428			4,518
Interest on Advances to Affiliates - Related Party		-			-
TOTAL INTEREST EXPENSE		63,866			74,137
CONSOLIDATED NET INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS, NET OF NON-CONTROLLING INTEREST	$	(748,543	)	$	194,558

Capital expenditures from discontinued operations approximately $37,500 and $182,000 for the six months ended July 31, 2017 and 2016, respectively.